Banco De Bogota Sa · BVC:BOGOTA
Banco De Bogota Sa — Q1 2016 Earnings Presentation
33 slides from Banco De Bogota Sa's earnings presentation, Jun 14, 2016
Slide 1: 1Q-2016 Consolidated Results Conference Call
1Q-2016 Consolidated Results Conference Call FULL IFRS June 14, 2016 T he IR Recognition granted by the Colombian Securities Exchange (Bolsa de Valores de Colombia S.A) is not a certification of the registered securities or the solvency of the issuer.
Slide 2: Disclaimer
Disclaimer Banco de Bogotá is an issuer of securities in Colombia. As a financial institution, the Bank, as well as its financial subsidiaries, is subject to inspection and surveillance from the Superintendency of Finance of Colombia. As an issuer of securities in Colombia, Banco de Bogotá is requir
Slide 3: Main Highlights (1/3)
Main Highlights (1/3) Banco de Bogotá’s performance in 1Q2016: • Attributable Net Income for the period, before wealth tax was 533.6 billion pesos. Including the wealth tax the attributable net income was 375 billion increased by 10.0% compared to 1Q15. • The Consolidated Assets, COP 150.5 trillion,
Slide 4: Main Highlights (2/3)
Main Highlights (2/3) • Cost of risk before recoveries of charge-off was 2.2% for 1Q16 and 2.1% after such recoveries. These ratios were affected by non-recurrent provisions for specific events such as Pacific Rubiales and two others companies default made during the quarter and by the decrease in t
Slide 5: Main Highlights (3/3)
Main Highlights (3/3) • Banco de Bogotá and its parent company Grupo Aval, has taken two structural decisions tending to strengthening the capital position of the Bank and focus their consolidated management in the financial business. Corficolombiana: As of June 30, 2016 the bank will cede control o
Slide 6: Colombia: Activity decelerates, but pace remains acceptable
Colombia: Activity decelerates, but pace remains acceptable GDP (YoY %) GDP growth by sector, first quarter (YoY %) GDP 2014 2015 2016py 4.6% 3.1% 2.8% 2.5% Business confidence (Index) Unemployment (%) 25.6 6.8 9.1% Source: DANE, Fedesarrollo. Estimates Economic Research Banco de Bogotá. 6
Slide 7: Colombia: High inflation would slowdown, rates near peak
Colombia: High inflation would slowdown, rates near peak Core and total inflation* (YoY %) Market-based inflation expectations - BEI (%) 8.2% 4.9% 4.5% 6.3% 3.9% 3.9% Inflation 2014 2015 2016py 3.7% 6.8% 5.6% Weather anomaly and food inflation (Std. Deviation, YoY %) Central bank interest rate: nomi
Slide 8: Colombia: Balance of payments adjustment is underway
Colombia: Balance of payments adjustment is underway Trade balance (USD M, monthly) Tourism and remittances (USD M, annual) 4,636 4,245 -1,290 Current Account (% GDP, quarterly) Foreign investment: direct and portfolio* (USD M, monthly) 1.9% 313 -6.3% 570 -6.5% Current account -1.1% 2014 2015 2016py
Slide 9: Cenam: Improving activity, stable inflation, low rates
Cenam: Improving activity, stable inflation, low rates GDP* (YoY %) Monthly activity indicator (YoY %) Inflation (YoY %) Central bank interest rate (%) Source: SECMCA, * International Monetary Fund (IMF). Estimates Economic Research Banco de Bogotá. 9
Slide 10: Cenam: Current account, remittances and fiscal accounts
Cenam: Current account, remittances and fiscal accounts Current account (% GDP)* Remittances (% GDP) Fiscal deficit and government debt 2015 (% GDP)* Exchange rate (Index Jun-15=100) Source: SECMCA, * International Monetary Fund (IMF). Estimates Economic Research Banco de Bogotá. 10
Slide 11: Balance Sheet Structure - Consolidated
Balance Sheet Structure - Consolidated Total Assets (Trillion COP) Growth excluding FX 1Q16/1Q15: 15.7% 1Q16/1Q15: 9.9% 1Q16/4Q15: -1.2% 1Q16/4Q15: 0.7% 152.3 150.5 130.1 1Q-15 4Q-15 1Q-16 Assets Breakdown 1Q-15 4Q-15 1Q-16 Foreign Foreign Foreign Operation (1) Operation (1) Operation (1) 38.2% 42.2
Slide 12: Balance Sheet Structure – Colombian Operation
Balance Sheet Structure – Colombian Operation (1) Total Assets (Trillion COP) 1Q16/1Q15: 11.5% 1Q16/4Q15: 1.8% 88.1 89.7 80.4 1Q-15 4Q-15 1Q-16 Assets Breakdown 1Q-15 4Q-15 1Q-16 24.5% 25.9% 26.1% 3.4% 3.4% 58.6% 57.8% 58.3% 3.6% 13.8% 12.1% 12.4% Loans and Leases, Net Fixed Income Investments Equit
Slide 13: Balance Sheet Structure – Central America
Balance Sheet Structure – Central America (1) Total Assets (Trillion COP) Growth excluding FX 1Q16/1Q15: 6.1% 1Q16/1Q15: 22.5% 1Q16/4Q15: -5.2% 1Q16/4Q15: -0.5% 64.2 60.8 49.7 1Q-15 4Q-15 1Q-16 Assets Breakdown 1Q-15 4Q-15 1Q-16 26.8% 26.1% 25.4% 11.2% 7.8% 8.5% 62.0% 66.1% 66.1% Loans and Leases, N
Slide 14: Loan Portfolio Breakdown by Business Segment - Consolidated
Loan Portfolio Breakdown by Business Segment - Consolidated Gross Loan Portfolio (COP Trillion) Growth excluding FX 1Q16/1Q15: 18.1% 1Q16/1Q15: 11.3% 1Q16/4Q15: -1.1% 1Q16/4Q15: 1.1% 92.5 91.5 77.5 1Q-15 4Q-15 1Q-16 Gross Loan Portfolio Breakdown (COP Trillion) Growth Excluding Growth (%) Fx 1Q16/1Q
Slide 15: Loan Portfolio Breakdown by Business Segment – Colombian Operation
Loan Portfolio Breakdown by Business Segment – Colombian Operation (1) Gross Loan Portfolio (COP Trillion) 1Q16/1Q15: 10.9% 1Q16/4Q15: 2.1% 51.1 52.2 47.0 1Q-15 4Q-15 1Q-16 Gross Loan Portfolio Breakdown (COP Trillion) Growth (%) 1Q16/1Q15 51.1 0.8% Microcredit 52.2 47.0 0.7% Mi crocredit Microcredi
Slide 16: Loan Portfolio Breakdown by Business Segment – Central America
Loan portfolio Breakdown by Business Segment – Central America (1) Gross Loan Porfolio (COP Trillion) Growth excluding FX 1Q16/1Q15: 29.2% 1Q16/1Q15: 11.9% 1Q16/4Q15: -4.9% 1Q16/4Q15: -0.2% 41.4 39.4 30.5 1Q-15 4Q-15 1Q-16 Gross Loan Portfolio Breakdown (COP Trillion) Growth Excluding Crec. (%) FX 1
Slide 17: Loan Portfolio Quality (1/5) – Consolidated
Loan Portfolio Quality (1/5) – Consolidated 30 days PDLs/ Gross Loans Cost of Risk (1) 90 days PDLs / Gross Loans 30 days PDLs / Gross Loans 90 days PDLs / Gross Loans Impairment loss (net of recoveries of charged-off assets) / Average Loans Impairment loss / Average Loans 1.9% 2.8% Excluding 2.6% 2
Slide 18: Loan Portfolio Quality (2/5) – Colombian Operation
Loan Portfolio Quality (2/5) – Colombian Operation (1) 30 days PDLs/ Gross Loans Cost of Risk (2) 90 days PDLs / Gross Loans 30 days PDLs / Gross Loans 90 days PDLs / Gross Loans Impairment loss (net of recoveries of charged-off assets) / Average Loans Impairment loss / Average Loans 3.1% 1.9% 2.8%
Slide 19: Loan Portfolio Quality (3/5) – Central America
Loan Portfolio Quality (3/5) – Central America 30 days PDLs/ Gross Loans 90 days PDLs / Gross Loans Cost of Risk (1) 30 days PDLs / Gross Loans 90 days PDLs / Gross Loans Impairment loss (net of recoveries of charged-off assets) / Average Loans Impairment loss / Average Loans 2.3% 2.3% 2.2% 2.0% 1.3
Slide 20: Loan Portfolio Quality (4/5) – Consolidated
Loan Portfolio Quality (4/5) – Consolidated 30 days PDLs 90 days PDLs 1Q-15 4Q-15 1Q-16 1Q-15 4Q-15 1Q-16 Commercial 1.8% 1.7% 2.0% 1.3% 1.3% 1.5% Consumer 4.4% 4.1% 4.5% 2.1% 2.0% 2.0% Mortgage 2.4% 2.3% 2.5% 1.1% 1.2% 1.2% Microcredit 12.7% 11.4% 12.2% 8.4% 7.2% 7.8% Total Loans 2.6% 2.4% 2.8% 1.5
Slide 21: Loan Portfolio Quality (5/5) – Colombia and Central America
Loan Portfolio Quality (5/5) – Colombia and Central America Colombia 30 days PDLs 90 days PDLs 1Q-15 4Q-15 1Q-16 1Q-15 4Q-15 1Q-16 Commercial 2.1% 2.0% 2.5% 1.6% 1.6% 1.9% Consumer 5.5% 5.0% 5.7% 3.0% 2.8% 2.9% Mortgage 1.2% 1.8% 2.3% 0.6% 1.1% 1.1% Microcredit 12.7% 11.4% 12.2% 8.4% 7.2% 7.8% Total
Slide 22: Funding - Consolidated
Funding - Consolidated Funding (COP Trillion) Deposits (COP Trillion) 1Q16/1Q15: 10.4% Growth excluding FX movement Growth excluding FX movement 1Q16/1Q15: 9.4% 1Q16/4Q15: 0.5% 1Q16/4Q15: 2.6% Bonds Interbank & Overnight Time Deposits Saving Accounts Checking Accounts Others Borrowings from Banks an
Slide 23: Funding - Colombian Operation
Funding - Colombian Operation (1) Funding (COP Trillion) Deposits (COP Trillion) Bonds Interbank & Overnight Time Deposits Saving Accounts Checking Accounts Others Borrowings from Banks and others Deposits 1Q16/1Q15: 14.2% 1Q16/1Q15: 9.8% 1Q16/4Q15: 1.8% 1Q16/4Q15: 4.2% 74.7 76.0 66.6 50.3 53.0 55.3
Slide 24: Funding – Central America
Funding – Central America (1) Funding (COP Trillion) Deposits (COP Trillion) 1Q16/1Q15: 5.0% Growth excluding FX movement Growth excluding FX movement 1Q16/1Q15: 8.8% 1Q16/4Q15: -1.3% 1Q16/4Q15: 0.3% Bonds Interbank and Overnight Time Deposits Saving Accounts Checking Accounts Others Borrowings from
Slide 25: Equity and Capital Adequacy
Equity and Capital Adequacy Total Equity (COP Trillion) Shareholders ‘ Equity (COP Trillion) Shareholders' Equity Non-controlling interest 1Q16/1Q15: 14.7% 1Q16/4Q15: -1.0% 1Q16/1Q15: 13.9% 13.3 13.2 1Q16/4Q15: -0.3% 11.5 17.4 17.4 15.3 4.1 4.2 3.8 13.3 13.2 1Q-15 4Q-15 1Q-16 11.5 Total Equity / Ass
Slide 26: Capital Adequacy – Main Subsidiaries
Capital Adequacy – Main Subsidiaries Banco de Bogotá in Colombia Corficolombiana Central America Tier I Tier II Tier I Tier II Tier I Tier II 26.3% 29.1% 4.3% 2.0% 18.5% 20.0% 13.2% 13.9% 4.8% 5.8% 0.2% 24.3% 24.7% 13.7% 14.2% 13.1% 14.2% March 2015 March 2016 March 2015 March 2016 March 2015 March
Slide 27: Regulatory Capital
Regulatory Capital Regulatory Capital December 31, December 31, COP Billion 2015 Previously Variation March 31, 2016 2015 Restated Reported Tier 1 Capital 7,909.1 11,486.7 3,577.6 12,229.2 Tier 2 Capital 5,044.6 5,044.6 - 4,515.9 Total Regulatory 12,953.7 16,531.3 3,577.6 16,744.9 Capital Risk Weigh
Slide 28: Capital Plan
Capital Plan Banco de Bogotá and its parent company Grupo Aval, has taken two structural decisions tending to strengthening the capital position of the Bank; and focus their consolidated management in the financial business. Corficolombiana: As of June 30, 2016 the bank will cede control of and will
Slide 29: Net Interest Margin
Net Interest Margin Quarterly Net Interest Margin Net Interest Income (Billion COP) Growth Rate 1Q-15 4Q-15 1Q-16 1Q16/1Q15 1Q16/4Q15 1,129.3 1,373.4 1,422.6 26.0% 3.6% Net Interest Margin on Investments (1) Net Interest Margin on Loans (2) Net Interest Margin (3) 6.1% 6.3% 6.0% 5.2% 5.1% 5.3% 2.1%
Slide 30: Fees and Other Operating Income
Fees and Other Operating Income Gross Fee income (COP Billion) 1Q16/1Q15: 24.1% 1Q16/4Q15: 2.4% 974.8 998.0 804.0 3.3% 3.0% 2.8% 24.7% 19.6% 21.4% Other 4.3% 3.9% 5.0% Pension fees Fiduciary activites 67.0% 73.0% 72.0% Banking fees 1Q-15 4Q-15 1Q-16 Other Operating Income (COP Billion) 1Q-15 4Q-15 1
Slide 31: Consolidated Efficiency
Consolidated Efficiency Efficiency Ratio (1) 45.8% 43.1% 43.5% 1Q-15 4Q-15 1Q-16 Operating Expenses / Average Assets (3) 3.5% 3.5% 3.2% 1Q-15 4Q-15 1Q-16 1/ Ca l culated as Personnel plus administrative expenses divided by net i nterest income plus net trading i ncome, other i ncome a nd fees a nd o
Slide 32: Efficiency – Banco de Bogotá in Colombia & Central America
Efficiency – Banco de Bogotá in Colombia & Central America (1) Efficiency – Banco de Bogotá in Colombia (1) 36.7% 31.2% 31.6% 1Q-15 4Q-15 1Q-16 Efficiency – Central America (1) 55.8% 55.5% 52.9% 1Q-15 4Q-15 1Q-16 1/ Ca l culated as Personnel plus administrative expenses divided by net i nterest inco
Slide 33: Profitability
Profitability (COP Billion) Net Income attributable to controlling interest Figures excluding wealth tax x.x 519.3 533.6 599.6 341.1 375.2 1Q-15 4Q-15 1Q-16 ROAA (1) 2.3% 2.0% 2.2% 1.7% 1.5% 1T15 4T15 1T16 18.1% ROAE (2) 16.1% 18.6% 11.9% 11.3% 1T15 4T15 1T16 (1) ROAA for ea ch quarter is ca lculate